Case Study 1
Fit Stop – Designing a Reward System
Introduction
Starting a business can be an exciting time for an entrepreneur but new market concepts and opportunities are useless without the strategies to operate the company to success. Day to day strategies are needed to achieve the organizations goals. The largest expense of any company is usually the compensation strategy. The face of the retail company is the service staff and their relation to the customer are paramount to success. Firms are in competition to find qualified, engaged employees. The pressure for an organization to get it right is the key to competitive success. Companies now look to creative compensation strategies to create a environment that employees want to…show more content… What do you think the employee needs are? Separate the needs into those that can be satisfied by extrinsic rewards and those that will be satisfied by intrinsic rewards.
Fit Stop needs to develop an attractive compensation system to attract and retain the dynamic qualified individuals within a cost effective manner. Initially the company does not see its profits for a year or two.
To satisfy employee needs Fit Stop needs to establish a rewards strategy that includes both extrinsic and intrinsic rewards to meet the needs of its potential employees, and the plan through which they will be provided to present to potential employees, and to maintain the employee behaviors necessary for organizational success.
Employees accepting a position with Fit Stop will first recognize the extrinsic rewards the company offers such as pay, general working conditions, coworkers and supervisory behavior.
Through the compensation system the organization can present the components of base pay, performance pay, and indirect pay to match or exceed in the market place.
Base pay based on time worked is fair to the employee as time is exchanged for monetary exchange. Performance pay would relate to organizational performance and advancement, and indirect pay such as dental and health benefits.
